I am doing my 1st sub2 and after having a few l/o’s under my belt, I would like to know if you seasoned sub2 guys/girls use the following forms or others.
- Purchase and sale agreement
- Declaration of Trust
- Warranty Deed to Trustee
- Assignment of beneficial interest in trust
- Letter to insurance company(changing it from them to you)
- Lender to lender(don’t send in, just change it on the payment coupon)
- Limited Power of Attorney
- Seller disclosure of DOS clause
- Authorization of Loan info
- HUD1 statement(if wanted or needed, I’d do it anyway)
chillipepper,
I use all of the forms you named with the exception of the assignment of interest. I have the seller deed the property directly to a trust which the beneficial interest creates later with the trustee.
Simpler for the seller to understand, less forms to have them sign, less explaining I have to do, probably easier for the judge to understand if the crap ever hits the fan. Better for everyone.
hello, chillipepper, im in texas too, and am learning about sub2. i just want to ask where you bought your forms? did you buy a training course? and did you think it is working for you? can you share those info, im thinking of buying a course but there are several out there im wondering which is the best one. theres one from peter conti, charlie france, they are all very expensive. can you tell if your first deal was successful. i want to network with you, thanks.
chilipepper,
If you’re doing the assignment of beneficial interest, then I would also recommend a bill of sale since (I’m told) the beneficial interest is personal property. It’s probably not a big deal, but might as well evidence the sale correctly.
Other docs I typically include:
change of address to HOA
lead-based paint addendum, if needed
testimonial form
letter from seller verifying trust
You might also consider an Affidavit of Agreement and blank Assignment of Contract for last minute changes and flexibility.
My seller insurance letter is actually a termination letter as opposed to attempting to change it over to me. It does change the address for premium refunds and correspondence.
I also get a standard Seller’s Disclosure Form, divorce decree if needed, survey if available, termite and inspection reports, etc. I treat it as a traditional sale so I have all the normal docs plus the Sub2 additions.
hope it helps…
Just for reference…
The seller disclosure is not just about the DOS…
Ours currently contains a whole bunch of other things that can go wrong…
Like…
We are NOT… and are Not acting in the capacity of a Real agents, brokers or otherwise.
Just a tidbit…
David Alexander